Providence placing raises €16.3m

PROVIDENCE Resources raised €16.3m yesterday to invest in the company's gas finds off Kinsale as well as the UK and US. The money was raised following the placing of 448.8 million shares on London's AIM exchange and Dublin's IEX. It comes just months after Providence said initial findings at Spanish Point off Galway exceeded expectations.

PROVIDENCE Resources raised €16.3m yesterday to invest in the company's gas finds off Kinsale as well as the UK and US. The money was raised following the placing of 448.8 million shares on London's AIM exchange and Dublin's IEX. It comes just months after Providence said initial findings at Spanish Point off Galway exceeded expectations.

"We expect 2010 to be a very exciting year for Providence and its shareholders," chief executive Tony O'Reilly said yesterday. "Whilst this fundraising is focused on the production and storage side of our business, we also expect to see material progress in our exciting portfolio of development and exploration assets such as those on the Irish Atlantic Margin."

The successful share sale is a sign that investors remain optimistic about the prospects for the oil and gas company which has operations in several countries. The "lion's share" of the money raised will be spent on operations in Kinsale, Mr O'Reilly said. The rest will be spent on operations in Sussex in England and several shared operations in the US.

Mr O'Reilly said Providence would not be expanding its 16pc stake in fields in Dunquin off Kerry which it currently owns together with oil giant Exxon Mobil, Italy's Eni and Sosina.